Last updated: December 23rd, 2025
Each state has unique income tax withholding rules. Below are Minnesota's 2026 withholding instructions, including allowance calculations, standard deduction adjustments, and the percentage method for determining tax due.
Employers must also adhere to federal income tax withholding rules. More information can be found here about federal rates.
Alternatively, employers can automatically calculate payroll withholding by using ezPaycheck.
| State Abbreviation | MN |
|---|---|
| State Tax Withholding State Code | 27 |
| Acceptable Exemption Form | W-4 |
| Basis For Withholding | State Allowances and Annualized Wage Amount |
| Acceptable Exemption Data | S, M / Number of Exemptions |
| TSP Deferred | Yes |
| Special Coding | None |
| Additional Information | None provided |
| Official State Tax Website | Visit Official Website |
Minnesota's Form W-4MN uses a worksheet to calculate state withholding allowances. Employees start with allowances for themselves and spouse (if one spouse doesn't work) similar to federal logic (e.g., married one-earner can take a higher allowance). They then add allowances for dependents, which in MN are tied to the state dependent credit (the form will ask for number of qualifying children under 17 and other dependents, assigning a value to each). Minnesota does not provide distinct allowances for age or blindness on the W-4MN - those factors are built into tax credits outside of withholding.
| Component | Allowances | Notes |
|---|---|---|
| Yourself | 1 allowance | Base allowance |
| Spouse | 1 allowance | If one spouse doesn't work (married one-earner) |
| Dependents | Calculated allowances | Tied to state dependent credit (qualifying children under 17 and other dependents) |
Total Allowances = Yourself + Spouse (if applicable) + Dependent-Based Allowances (from worksheet)
If both spouses work, Minnesota instructs dividing allowances between them to avoid under-withholding. Age and blindness factors are built into tax credits outside of withholding.
For links to official state tax and revenue websites for all 50 states, visit our State and Local Tax Sites page.
Determine the employee's total wages for one payroll period. For non-periodic distributions (as per W-4MNP), use that amount.
Annualize the wages by multiplying the payroll period wages by the number of pay periods per year: Daily (260 working days/year): Multiply by 260; Weekly (52 weeks/year): Multiply by 52; Biweekly (every two weeks): Multiply by 26; Semimonthly: Multiply by 24; Monthly: Multiply by 12; Annually: Multiply by 1.
Multiply the number of the employee's withholding allowances by $5,300.
Allowance Amount = $5,300 × Number of Allowances
Subtract the result from Step 3 from the annualized wages from Step 2. If zero or less, no tax is withheld.
Use the result from Step 4 to determine the annual tax. Apply the appropriate tax table (Married or Single) from the Tax Chart section to find the preliminary annual tax amount.
Divide the annual tax amount determined in Step 5 by the number of pay periods per year. Round to the nearest dollar. This is the Minnesota tax to withhold per pay period.
Want to calculate in an easier way? Learn how to calculate Minnesota taxes via ezPaycheck below.
Learn More| Withholding Allowance | Annual Amount |
|---|---|
| 1 | $5,300 |
Formula: $5,300 × Number of Allowances
Allowance amount per allowance.
| If Taxable Income Is | Tax Withholding | ||||
|---|---|---|---|---|---|
| Over | But Not Over | Base | + | Rate | Of Excess Over |
| $0 | $4,700 | $0 | + | 0.00% | $0 |
| $4,700 | $38,010 | $0 | + | 5.35% | $4,700 |
| $38,010 | $114,130 | $1,782 | + | 6.80% | $38,010 |
| $114,130 | $207,850 | $6,958 | + | 7.85% | $114,130 |
| $207,850 | and over | $14,315 | + | 9.85% | $207,850 |
| If Taxable Income Is | Tax Withholding | ||||
|---|---|---|---|---|---|
| Over | But Not Over | Base | + | Rate | Of Excess Over |
| $0 | $14,700 | $0 | + | 0.00% | $0 |
| $14,700 | $63,400 | $0 | + | 5.35% | $14,700 |
| $63,400 | $208,180 | $2,605 | + | 6.80% | $63,400 |
| $208,180 | $352,630 | $12,450 | + | 7.85% | $208,180 |
| $352,630 | and over | $23,790 | + | 9.85% | $352,630 |
ezPaycheck simplifies payroll calculations, including Minnesota's withholding rules. Easily compute taxes, generate reports, and print paychecks or tax forms.
We strive to provide accurate and up-to-date Minnesota state tax information for 2026. If you notice any discrepancies, errors, or have questions about the tax rates or calculations shown on this page, please contact our support team. We appreciate your feedback and will review and update the information as needed.
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